Over the past decade, average college tuition and fees increased
between 20 and 38 percent, depending on the type of institution. This
rising cost of college affects all students--both veteran and nonveteran
students--who rely on a mix of family resources, grants, scholarships,
loans, and work-study to finance their education. Students may face
particular hardships when the cost of attendance outpaces students'
available resources. For example, some lenders recently have tightened
the eligibility criteria for obtaining student loans in response to
problems in financial markets. In fiscal year 2007, the Department of
Education (Education) provided $82 billion in financial aid in the form
of grants, loans, and work-study programs under Title IV of the Higher
Education Act of 1965, as amended, to 11 million students and their
families. The primary Title IV aid programs include Pell Grants,
Stafford Loans, and campus-based aid programs. Veterans also may be
eligible for federal financial aid from the Department of Veterans
Affairs (VA). VA awarded about $2 billion in Chapter 30 education
benefits under the Montgomery GI Bill1 (Chapter 30 GI benefits) to more
than 300,000 veteran students in fiscal year 2007. In 2002, we reported
that veteran students were awarded similar amounts of Title IV aid as
nonveteran students, and veterans' total federal aid was greater
when Chapter 30 GI benefits were included. Congress asked about whether
this has changed, resulting in veterans receiving less federal financial
aid. To address this question, Congress asked us to determine (1) how
the amount of Title IV financial aid awarded to veteran students
compares with that awarded to nonveteran students, (2) how higher
education institutions allocate Title IV financial aid among veteran and
nonveteran students, and (3) how federal agencies and higher education
institutions provide information to veterans on Title IV financial aid.

Overall, veteran students received similar amounts of Title IV aid
as nonveteran, independent students. However, when including Chapter 30
GI benefits, veterans received more total federal aid than nonveterans.
Laws and regulations largely dictate how higher education institutions
allocate Title IV aid among veteran and nonveteran students, but five of
the eight schools we interviewed used their limited flexibility to allow
veterans to be eligible for larger amounts of certain types of Title IV
aid. While federal agencies and schools provide the same information on
Title IV aid to all students, some of the schools we interviewed in
areas with nearby military bases reach out to veteran students. In
addition, there are some recent federal efforts to inform veterans about
Title IV aid, such as workshops on federal aid for personnel separating
from the military.